AN EMPIRICAL INVESTIGATION ON THE ACCEPTANCE AND ADOPTION OF E-COMMERCE AMONG INTERNET USERS IN MALAYSIA SHAIDATUL AK'MAR BINTI YAHYA Dissertation Submitted to the Graduate School of Business Universiti Utara Malaysia in Fulfillment of the Requirement for the Degree Master of Science in Management 2011 brought to you by CORE metadata, citation and similar papers at core.ac.uk provided by Universiti Utara Malaysia: UUM eTheses
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m AN EMPIRICAL INVESTIGATION ON THE
ACCEPTANCE AND ADOPTION OF E-COMMERCE
I)
AMONG INTERNET USERS IN MALAYSIA
SHAIDATUL AK'MAR BINTI YAHYA
I Dissertation Submitted to the Graduate School of Business
Universiti Utara Malaysia
m in Fulfillment of the Requirement for the Degree Master of Science in Management
P 2011
brought to you by COREView metadata, citation and similar papers at core.ac.uk
provided by Universiti Utara Malaysia: UUM eTheses
PERAKUANKERJAKERTASPROJEK (Certification of Project Paper)
Saya, mengaku bertandatangan, memperakukan bahawa (I, the undersigned, certified that) SHAlDATLlL AK'MAR BlNTl YAHYA (805514)
Calon untuk ljazah Sajana (Candidate for the degree of) MASTER OF SCIENCE (MANAGEMENT)
telah mengemukakan kertas projek yang bertajuk (has presented hidher project paper of the following title)
AN EMPIRICAL INVESTIGATION ON THE ACCEPTANCE AND ADOPTION OF E-COMMERCE AMONG INTERNET USERS IN MALAYSIA
Seperti yang tercatat di muka surat tajuk dan kulit kertas projek (as it appears on the title page and front cover of the project paper)
Bahawa kertas projek tersebut boleh diterima dari segi bentuk serta kandungan dan meliputi bidang ilmu dengan memuaskan. (that the project paper acceptable in the form and content and that a satisfactory knowledge of the field is covered by the project paper).
Nama Penyelia : PROF. DR AJAY CHAUHAN (Name of Supen/isor)
Tandatangan (Signature)
OR AJAY CHAUHAN PROFESSOR
06010 Sfntdr, Kedah, Malaysia
Tarikh : 16 JUNE2011 (Date)
PERMISSION TO USE
No part of this unpublished research may be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise without the prior written permission except as provided below:
1) Any material contained in our derived from this unpublished research may only be used
by others in their writing with due acknowledgement.
2) UUM or its Library will have the right to make and transmit copies (print or electronic)
for institutional and academic purposes.
3) The UUM library will have the right to make, store in a retrieval system and supply
copies of this unpublished research if requested by other universities and research
libraries.
Affirmed by: Shaidatul Ak'mar Binti Yahya
ABSTRACT
This study examines the effect of three factors on the acceptance and adoption of electronic
commerce among internet user in Malaysia. A review of the literature shows that owner
characteristics such as lack of knowledge and perceived lack of trust are significant inhibitors
while environment characteristics such as government support are significant motivators of
electronic commerce in Malaysia. A questionnaire survey was conducted in 150 respondents of
internet user in Kuala Lumpur. A total of 108 valid responses were obtained. Stratified random
sampling was adopted over other techniques to enhance representativeness. Data analysis shows
that significant relationship exists between each of the three variables and electronic commerce
adoption among internet user in Kuala Lumpur. Security issues emerged as the most important
factor influence the acceptance and adoption of e-commerce. This factor is followed by
government support and knowledge in information technology.
Keywords: electronic commerce, information technology, internet user, security
ABSTRAK
Penyelidikan ini menguji pengaruh tiga faktor pada penerimaan, dan penggunaan perdagangan
elektronik diantara pengguna internet di Malaysia. Sebuah kajian literatur menunjukkan bahawa
ciri-ciri pemilik seperti kurangnya pengetahuan dan dirasa kurang kepercayaan adalah inhibitor
signifikan sedangkan ciri-ciri persekitaran seperti sokongan kerajaan adalah motivator signifikan
perdagangan elektronik di Malaysia. Sebuah tinjauan soal selidik ini dilakukan di 150 responden
pengguna internet di Kuala Lumpur. Sebanyak 108 tanggapan yang sah diperolehi. Stratified
random sampling diadopsi dari teknik lain untuk meningkatkan penvakilan yang sempurna.
Analisis data menunjukkan bahawa ada hubungan yang signifikan antara masing-masing dari
tiga pembolehubah dan adopsi perdagangan elektronik antara pengguna internet di Kuala
Lumpur. Masalah keselamatan muncul sebagai faktor yang mempengaruhi yang paling penting
penerimaan dan pelaksanaan e-dagang. Faktor ini diikuti dengan sokongan kerajaan dan
pengetahuan di bidang teknologi maklumat.
Kata kunci: perdagangan elektronik, teknologi maklumat, pengguna internet, keselamatan
ACKNOWLEDGMENT
In the end of this research, I would like to thank Allah S.W.T for the blessings that been
bestowed upon me and also for giving me the strength and ability to complete the thesis
successfully. First and foremost, I would like to extend my greatest gratitude to my family for
their constant support and encouragement in completing this research.
I am deeply in debt to my supervisor, Prof. Dr. Ajay Chauhan for his patience, understanding,
assistance and his constructive criticism in preparing dissertation. Thank you for being such an
advisor.
And to all my colleagues, classmate and relatives: thank you for being such a great bunch. There
are no others I would rather spend my time with more than all of you.
WITH ALL OF THE SINCERITY THAT I POSSESS, THANK YOU
Abstract
Abstrak
Acknowledgement
Table of Contents
List of Tables
List of Figures
Chapter 1: Introduction
1.1 Introduction 1.2 Background of the study 1.3 An Overview of E-commerce Guidelines in Malaysia 1.4 Problem Statement 1.5 Purpose of Study 1.6 Research Objectives 1.7 Significance of the Study 1.8 Hypothesis 1.9 Scope and Limitation of the Study 1.10 Definition of terms
1.10.1 Electronic Commerce 1.10.2 Security 1.10.3 Internet
1.1 1 Organization of the Thesis
Chapter 2: Literature Review
2.1 Introduction 2.2 Literature Review 2.3 E-commerce Overview 2.4 Applications of Electronic-commerce 2.5 IT Knowledge 2.6 Security 2.7 Government Support 2.8 Acceptance of E-Commerce 2.9 Adoption of E-commerce 2.10 Factors that Affect E-Commerce Adoption on SME's
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vi
... Vlll
Chapter 3: Research Methodology
3.1 Introduction 3.2 Operational Variables 3.3 Research Framework 3.4 Research Design 3.5 The Data Collection
3.5.1 Questionnaire 3.6 Population 3.7 Sampling Techniques 3.8 Sampling Size 3.9 Procedure for Analysis of Data 3.10 Data Analysis
3.10.1 Frequency Distribution 3.10.2 Reliabilitylvalidity 3.10.3 Descriptive statistic 3.10.4 Correlation statistic 3.10.5 Chi square I Cross tabulation 3.1 0.6 Regression Analysis
4.3.1 Frequencies Distribution 4.4 Level of Acceptance and Adoption of E-Commerce in Malaysia 4.5 Relationship of Factors Towards Acceptance and Adoption of E-Commerce
User in Malaysia 4.6 Most Influence Factors towards Acceptance and Adoption of E-Commerce 4.7 Correlation among the variables